Kelloggs to launch more affordable products in India

NEW DELHI: Breakfast food-maker Kelloggs on Wednesday said it plans to introduce more affordable products targeted at the mass market segment to penetrate deeper into India.

"Small packs are a big growth driver for us. It has expanded our reach and penetration across the country. Going forward, we expect that we will continue to evaluate opportunities and come up products which are affordable," Kelloggs India Head Marketing Vikram Bahl told PTI.

He, however, did not specify what products the company could launch.

Kelloggs India currently sells breakfast cereals in the country like Kelloggs Cornflakes and Kelloggs Chocos at various price points starting from Rs 30. In 2007, Kelloggs came out with a small pack for both products for Rs 10.

The company, which launched Kellogg's Heart-to-Heart Oats, said the product is made of wholegrain oats and is targeted at males over 35 years of age. The new product is available in a 200-gram pack priced at Rs 29, a 400-gram pack at Rs 55 and a 1-kilogram pack priced at Rs 118.

"In the last 3-4 years, we have come up with one new product every year. With changing lifestyles, young people over the age of 30 are vulnerable to heart diseases. So we see clear opportunities for the oat segment," he said.

In the recent past, other FMCG giants like Britannia and GSK Consumer Healthcare have also expressed their interest in getting into the Indian breakfast cereals market.

"The ready-to-eat cereal market is around Rs 400 crore. It is growing at the rate of 20-30 per cent. The overall packaged food industry is also growing. So every one will have its own space in the market and ultimately will help grow the category," he said.

Asked if the company is likely to effect any price revision for its products on account of high input costs, he said the company had already effected a 5 per cent increase earlier this year and was unlikely to make a further hike in the near future.